Post market close on 19 Oct, CMT announced 3Q12 revenues of S$167.2mn (+5.1%y-y; +1.0%q-q) and DPU of Scts 2.42.
Nomura notes that revenue was higher q-q largely due to higher rental incomes from Bugis+ which completed its asset enhancement works (AEI), offsetting a lower contribution from IMM where AEI work is still ongoing.
Here's more from Nomura.
Property expenses were slightly higher q-q, partly due to the opening expenses at JCube.
CMT’s portfolio occupancy dipped slightly to 98.4%, down from 98.6% in 2Q12. This was largely due to lower occupancy at IMM, which is currently undergoing AEI. 9M12 shopper traffic was down 2.2%y-y, it appears that the y-y decline was lower in 3Q12 versus 2Q12. 9M12 portfolio tenant sales were up 1.2% y-y.
Overall, we judge 9M12 results to be broadly in-line with our FY12F estimates, and we expect minimal stock price reaction on the latest set of results.
AEI work completed at JCube and Bugis+ with both assets substantially leased.
As at 3Q12, AEI work at JCube and Bugis+ is completed, with both assets attaining committed occupancies of 99.5% and 98.5%, respectively. In addition, an average of 1.3m and 1.4m people a month visit the malls, respectively. Atrium@Orchard AEI is on track for completion in 4Q12 and has committed occupancy increasing to 90.0% as of 3Q12, whilst Block E of Clark Quay is scheduled for opening in 4Q12 as well.
On the whole, it appears that AEI and pre-leasing activity is on-track as of 9M12.P
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
| www.marshe.sg | www.marsheproperties.com.sg | www.hudcsg.blogspot.com |
| www.hausatserangoon.sg | www.8riversuites.com | www.newagents.sg |